CAMP HILL, PA., CHARLOTTE, N.C. AND ATLANTA, GA. – National Fitness Partners (NFP), a leading Planet Fitness franchisee, has announced a significant expansion through the acquisition of 16 Planet Fitness clubs. This strategic move, unveiled on January 21, 2021, encompasses 15 locations in the rapidly growing markets of greater Cleveland and Akron-Canton, Ohio, along with one key location in central Pennsylvania. This acquisition firmly positions National Fitness Partners as a dominant player in the fitness industry, reinforcing its commitment to providing accessible and affordable fitness options.
The transaction was strategically financed with junior capital from Ares Management Corporation’s Credit Group, highlighting the financial strength and future growth potential recognized in National Fitness Partners. This expansion elevates NFP’s portfolio to an impressive 94 Planet Fitness clubs, coupled with exclusive development rights for over 40 additional locations across Pennsylvania, Ohio, Delaware, North Carolina, and South Carolina. National Fitness Partners operates as a portfolio company under Argonne Capital Group, LLC, an Atlanta-based private investment firm.
Stephen Kindler Jr., President and CEO of National Fitness Partners, expressed strong confidence in the future of the fitness sector. “We are incredibly optimistic about both the near-term recovery and the sustained long-term growth of the Planet Fitness brand,” Kindler stated. “The encouraging trends we are observing in membership and club utilization clearly indicate a robust resurgence from the challenges posed by the COVID-19 pandemic. This substantial investment significantly broadens our market presence into vital new areas and strengthens our ongoing mission to ensure more individuals have access to budget-friendly fitness resources. We firmly believe that regular exercise is fundamental to enhancing the physical, mental, and emotional well-being of our valued members.”
Layton Grisette, Managing Director at Argonne Capital, echoed this sentiment, emphasizing the strategic advantages of this acquisition. “This transaction presents a unique and compelling opportunity for National Fitness Partners to not only solidify its core business operations but also to strategically diversify its geographic footprint and revenue streams. Importantly, it optimally positions the company to capitalize on considerable growth prospects as the COVID-19 pandemic gradually subsides,” Grisette explained.
This acquisition marks the seventh for National Fitness Partners since its inception in 2016. NFP was initially established through a partnership between Argonne and the Kindler family, acquiring 10 Planet Fitness locations in central Pennsylvania. The Kindler family’s deep roots in the fitness industry stretch back to 1967, becoming legacy Planet Fitness franchisees in 2005 when they transitioned two Harrisburg, PA gyms to the Planet Fitness model.
Joe Carvalho, Managing Director within the Credit Group of Ares Management, underscored the strategic rationale behind their financial support. “This financing empowers National Fitness Partners to successfully execute a highly strategic transaction,” Carvalho noted. “We have been particularly impressed by the resilience and performance of both Planet Fitness and National Fitness Partners throughout the COVID-19 pandemic. We are delighted to support this team of highly experienced operators and their vision for continued growth.”
Legal counsel for National Fitness Partners and Argonne was provided by King & Spalding LLP. Additionally, NFP and Argonne received advisory services from Lathrop GPM, LLP, Ernst & Young LLP, McGuireWoods LLP, and Smith & Howard, P.C. Fifth Third Securities, Inc. acted as the exclusive financial advisor to NFP and Argonne. Proskauer Rose, LLP served as legal advisor to Ares.
About Planet Fitness
Founded in 1992 and headquartered in Dover, N.H., Planet Fitness (NYSE: PLNT) stands as one of the largest and fastest-growing franchisors and operators of fitness centers in the United States, measured by both membership numbers and total locations. As of September 30, 2020, Planet Fitness boasted over 14.1 million members and a network of 2,086 stores spanning 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia. Planet Fitness is dedicated to enhancing lives by delivering a high-quality fitness experience within a welcoming and non-intimidating atmosphere, famously known as the Judgement Free Zone®. Notably, over 95 percent of Planet Fitness locations are independently owned and operated by driven entrepreneurs.
About National Fitness Partners
Established in 2016, National Fitness Partners emerged from a partnership with Argonne Capital Group to acquire 10 Planet Fitness locations in central Pennsylvania from the Kindler family. Recognized as the 2019 Planet Fitness “Operator of the Year,” National Fitness Partners has grown into one of the largest developers and operators within the Planet Fitness system. Headquartered in Camp Hill, PA, NFP employs over 1,000 individuals and currently operates 94 Planet Fitness locations across central Pennsylvania, Philadelphia, southern Delaware, greater Charlotte, N.C., the Triad region of N.C., South Carolina, greater Cleveland, Ohio, and Akron-Canton, Ohio.
About Argonne Capital Group
Argonne Capital Group, based in Atlanta, is a closely held private investment firm focused on investments in middle-market companies, particularly within the multi-unit, multi-location restaurant, retail, and service sectors. Argonne also maintains a significant presence in multi-tenant retail real estate through its RCG Ventures platform. Unlike traditional private equity structures, Argonne independently capitalizes each investment, affording the firm considerable flexibility in transaction types and an indefinite holding period per asset. Since its founding in 2003, the firm has invested over $850 million in equity. For further details, please visit: http://argonnecapital.com/.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager, operating integrated groups across credit, private equity, real estate, and strategic initiatives. Ares Management’s investment groups collaborate to provide innovative investment solutions and consistent, attractive returns for fund investors throughout various market cycles. As of September 30, 2020, Ares Management’s global platform managed approximately $179 billion in assets under management, supported by over 1,400 employees across North America, Europe, and Asia-Pacific. For more information, please visit www.aresmgmt.com.
